Like most people, I carry various kinds of disaster insurance. If I crash my car, I’ll get paid back its worth. If my house burns down, I will lose lots of personal effects and time, but not my financial investment.
Even if the law or mortgage lenders didn’t require car/home/life insurance, I would still buy them. They are a large expense but they have a huge benefit: They allow me to live my life without fear of financial ruin.
If you could buy a policy on your software development efforts, guaranteeing some quick recovery if anything goes horribly wrong, would you?
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